Oil closes lower as supply concerns ease in Europe

Oil drilling rigs

Oil closed with a decline today, Dec. 23, ahead of the Christmas holiday, as concerns about supplies to Europe eased after reports that the Druzhba pipeline had been restarted.

Brent crude fell 0.45%, or 31 cents, to close at $72.63 a barrel, after recording losses of 2.1% last week.

WTI crude slipped 0.3%, or 22 cents, to $69.24, deepening last week's losses of 2.6%.

Analysts at Macquarie expect crude supplies to increase in 2025, which could push Brent prices to settle at an average of $70.50 a barrel, down from $79.64 a barrel this year.

Concerns over supplies to Europe eased after reports that the Druzhba pipeline—which carries oil from Russia and Kazakhstan to Hungary, Slovakia, the Czech Republic and Germany—had been restarted. The pipeline was closed last week due to technical problems at a Russian pumping station.

Meanwhile, the losses were limited by the escalation of geopolitical tensions after the US President-Elect threatened to restore US control over the Panama Canal, which was met with disapproval from the Panamanian side.